GAO was requested to comment on a proposed amendment to the Federal Procurement Regulations which would raise the threshold for requiring cost or pricing data in connection with negotiated procurements and modifications from $100,000 to $500,000. The amendment would also raise the threshold for requiring preaward audits of contractor proposals for negotiated contracts and modifications in which the price is based on cost or pricing data. GAO objects to the proposed amendment because it believes that the requirement for the submission of certified data in noncompetitive situations and for preaward audits in the $100,000 to $500,000 range has been effective and should be continued. GAO is concerned that increasing the threshold may reduce the Government's assurance of fair and reasonable prices on negotiated contracts and modifications.
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